Bankrupt juice chain Organic Avenue to be rejuvenated

There is life yet in Organic Avenue, the juice chain that appeared to be sucked dry when it filed for bankruptcy protection in October.

Private investment firm Arrow Equity Fund acquired the retailer's assets for $1.7 million at an auction last week and intends to reopen most of its stores by the middle of next month.

"Organic Avenue is a brand that's been around for 15 years and got a lot of recognition," said Rob Tramantano, an executive at Keen-Summit Capital Partners, which managed the auction. Kevin Nash, an attorney for Arrow Equity, didn't immediately return a call seeking comment.

The sale caps a tumultuous year for Organic Avenue. In January, the company sacked about a third of its staff and in August was acquired by private-equity firm Vested Capital for no cash—just stock options. In October, Organic Avenue said it would close all 10 of its shops and filed for Chapter 7 bankruptcy, a process that typically results in companies being liquidated. It seemed the pioneering firm had lost its way in a flooded juice market where health clubs, restaurants and even omnipresent Starbucks hawk concoctions of liquefied kale, spinach and other wholesome stuff.

But in the end, bottom-feeders decided Organic Avenue was worth another squeeze. One reason: It has leases in several desirable Manhattan locations. Ultimately, 19 parties took a close look, and eight bid to acquire all or some the retailer's assets. Tramantano said Arrow Equity intends to reopen eight Manhattan locations, plus a commissary outpost in Long Island City.

Crain’s New York Business is the trusted voice of the New York business community—connecting businesses across the five boroughs by providing analysis and opinion on how to navigate New York’s complex business and political landscape.